The U.S. high-performance films market reached $1.6 billion in 2013 and is
expected to grow to $1.9 billion in 2018, with a compound annual growth rate
(CAGR) of 4.5%.

This report provides:

An overview of the U.S. market for high-performance films.

Analyses of global market trends with data from 2013 and projections of
compound annual growth rates (CAGRs) through 2018.

Identification of trends affecting high-performance polymer films and
their major end-use application markets.

A breakdown of end markets for high-performance films by material types,
with sections devoted to each class of high-performance films.

A look at how structural issues affect the high-performance plastic films
industry, such as the roles of film fabricators, converters, and distributors.

Comprehensive profiles of leading companies in the industry.

REPORT SCOPE

INTRODUCTION

In the years since World War II, plastics, in their many forms, have become
ubiquitous in developed nations, and are increasingly becoming common in the
developing parts of the world as well. The United States was until recently
the world's largest producer and user of polymer products. In recent years
China, which has become the world's factory, surpassed North America in
plastics production; however, the U.S. remains the largest user of plastics
and plastic products. With abundant and cheap natural gas feedstock from
hydraulic fracturing ("fracking") of tight gas shales, large petrochemical and
polymer plants are again being built in the Ü.S.

Synthetic polymers are made and used in many different forms, from synthetic
fibers to extruded and molded products such as films and bottles, to foam
mattresses. Often the same polymer can make products with entirely different
properties and uses. Polyethylene terephthalate (PET) is a good example; it
was first known and used as a synthetic fiber (Dacron and other brands). Later
large use was developed for PET as a blow-molded bottle resin for soft drinks
and other beverages, and also as a performance film for photographic film and
magnetic media.

In this BCC Research report update by a different author, a Ph.D. chemical
engineer who did an earlier BCC Research update several years ago, we study
one versatile group of polymer products, high-performance plastic films. The
noun film is defined in the American Heritage Dictionary as follows:

1. A thin skin or membrane. 2. A thin, opaque, abnormal coating
on the cornea of the eye. 3. A thin covering or coating: a film of dust
on the piano. 4. A thin, flexible, transparent sheet, as of plastic,
used in wrapping or packaging. 5. a. A thin sheet or strip of flexible
material, such as a cellulose derivative or a thermoplastic resin, coated with
a photosensitive emulsion and used to make photographic negatives or
transparencies. b. A thin sheet or strip of developed photographic negatives
or transparencies. 6 .a. A movie, especially one recorded on film. b.
The presentation of such a work. c. A long, narrative movie. d. Movies
collectively, especially when considered as an art form.

It can be seen that "film" has several meanings as a noun and even more as a
verb. The firms covered in this report are included in definitions 4, 5.a, and
5.b. Although this definition comes from the most recent edition of this
dictionary, the inclusion of "cellulose derivative" is now virtually obsolete
since cellulose has long been replaced by synthetic polymers.

There is a difference between film and sheet, with films the thinner form.
Plastic extrusions have usually been considered to be films up to about 0.25
mm, equivalent to 10 mils or 0.001 inch. Above this thickness a "film" of most
materials usually becomes a "sheet." However, as film technology has improved
the flexibility of films, some markets define films slightly differently. Now
thicknesses up to 0.40 inches (40 mils) may be defined as film by some
engineers.

Thus, these differential points between film and sheet are not absolute, and
engineers can define films in different ways. As discussed in this report,
while some greater thicknesses are now considered film instead of sheet,
minimum film thicknesses are also trending thinner toward micro thicknesses as
new technologies emerge. Many high-temperature films are in the range of 0.001
inches to 0.010 inches (10 to 100 mils). At these thicknesses, a little film
resin can go a long way. A note on thickness units: in film technology, both
English and metric units are commonly used. In addition, in the U.S. film
thickness is commonly expressed in gauge. In film technology gauge is a
measurement of film thickness, where one gauge unity equals 0.01 mil or about
0.25 micrometer or micron. Perhaps the easiest way to remember the
relationship between these units is that 100-gauge film is 1 mil or 25 microns
thick. In this report, film gauge will be referred to in the manner that is
the standard in the industry under discussion.

High-performance thermoplastic (TP) films, the subject of this study, are
playing an increasingly important role as engineers design products in
increasingly demanding environments and demand higher performance from the
products they use. Historically, the most important applications for these
films were for photographic and reprographic applications, both of which are
disappearing from use as digital formats take over these businesses.
Fortunately, new applications are constantly being developed to replace those
lost to technology. Today, these films may make possible safer and lighter
packaging, economic electric vehicles, better liquid crystal displays (LCDs)
and the growth of an economically practical photovoltaic (PV) solar power
industry.

Major polymer and film producing companies are important technology drivers
and invest significant capital in R&D to improve their technologies.
Innovations were driven initially by polymer chemistry, but increasingly, they
are being driven by improved fabrication and treatment of films. One example
is the complex development of specialty polyolefin films as membrane
separators for lithium-ion batteries.

STUDY GOALS AND OBJECTIVES

Goals and objectives of this study include the following:

Identifying trends affecting high-performance polymer films and their
major end-use application markets. For example, the photovoltaic market is one
of the fastest-growing markets for high-performance film. Each of the major
polymer films or film families is discussed and analyzed in detail. They
include polyesters, polyolefin-based film resins, polyamides (nylons),
polycarbonates, bioplastics, fluoropolymers, PMMA-type acrylics and
polyimides. Newer high-performance film resins studied include cyclic olefin
copolymers (COCs), polyethylene naphthalate (PEN), liquid crystal polymers
(LCPs), polysulfones and polyetherimides.

Reviewing, analyzing and forecasting specific end markets for
high-performance films by material types, with sections devoted to each type
of high-performance film resin. This includes both the major resin types and
several smaller-volume film materials for which markets were estimated.

Analyzing and forecasting market developments from the viewpoint of major
applications for high-performance films. These include packaging,
electrical/electronic, automotive, release films and photographic/reprographic
films.

Analyzing how structural issues affect the high-performance plastic films
industry, such as the roles of film fabricators, converters and distributors;
product differentiation and substitution; marketing and pricing; and
international aspects of the business.

Profiling many of the most important suppliers to the high-performance
plastic films industry. These include suppliers of plastic resins (many of
whom also fabricate films), equipment producers, and specific film converters
and distributors.

REASONS FOR DOING THE STUDY

High-performance plastic films have become a large and important niche market
in the much larger overall plastic films industry. High-performance films are
specialty products that sell at premium prices because they do jobs that
commodity films cannot do. Their use is driven by the specific applications
for which they are targeted.

Although the volumes of high-performance films are small when compared to
those of commodity films, the dollar value of this market is
disproportionately high. High-performance films, since they are specialty
items, command higher prices, higher than commodity films and often several
times as high.

Markets for high-performance films offer opportunities to create value and
move discussions to topics beyond purchase price. Technology advances should
help drive technology developments in major areas, including the largest
end-use market in packaging. New and better barrier film structures with
high-performance films allow longer shelf life and better appearance.

Developments using these films should have some significant effects on our
economy and help provide the ability to solve some current problems such as
climate change, where improved performance in applications such as solar cells
and fuel cells can help attack global warming, one of the most serious
environmental concerns.

Similar work is going on in the automotive arena. The ability of engineers to
meet design goals for products such as solar cells and/or batteries that power
cars will in some major parts depend on development of high-quality
performance films.

High-performance markets increasingly are becoming those where the major
chemical companies want to place their future. This business is also a global
one, with many foreign-owned firms active in the U.S. market. Industry leaders
have worldwide marketing and manufacturing facilities, often in joint ventures
with local companies. The rise of China as a manufacturing behemoth has led to
formation of many Chinese-foreign joint ventures.

BCC Research has continually updated this study to provide an up-to-date
reference for those interested in and/or involved in these products and their
use.

CONTRIBUTION OF THE STUDY AND INTENDED AUDIENCE

Because of the size and diversity of the materials and products used in
high-performance plastic films, this report should be of interest to a wide
group of organizations and individuals. This includes people who are involved
in the development, design, manufacture, sale and use of these films, as well
as government officials and the general public. This report will be of value
to technical and business personnel in the following areas, among others:

Personnel in end-user companies in a wide range of industries from food
packaging to aerospace to photovoltaics. The focus of this report is on the
interests of specifying engineers and procurement commodity managers.

Companies involved in the design and construction of process plants that
manufacture both the basic film resins and high-performance plastic films
themselves.

Companies that supply, or want to supply, equipment and services to
high-performance plastic films companies.

Financial institutions that supply money for such facilities and systems,
including banks, merchant bankers, venture capitalists and others.

Investors in both equity and fixed-income markets. The future of the
specialty film business very much depends on the values of the publicly traded
stocks of companies such as 3M and DuPont.

Personnel in government at many levels, ranging from federal to state and
local authorities, many of whom are involved in trying to ensure public health
and safety. The report also will be of interest to military scientists
studying new packaging and equipment.

SCOPE AND FORMAT

High-performance films can be defined in any of several ways: by volume,
price, performance, end-use markets, resin types, or a combination of two or
more of these characteristics.

For this study, high-performance films are defined as thin-gauge, mostly
extruded or solution-cast polymer sheets that generally meet at least one of
the following criteria: pricing above commodity film levels, continuous-use
temperature above commodity plastics, and end-uses requiring technical
capability and thickness at or below 30 mils. These are films that are used
primarily for their performance characteristics, not because of their price.
Emphasis is on those markets and products where opportunities are the greatest.

Therefore, the distinguishing characteristics of high-performance films are as
follows:

Relatively expensive.

Thin gauge (compared to sheet).

Possess special performance characteristics.

Significant applications other than in packaging.

High-performance films generally are fabricated (or converted) in relatively
small volumes (at least compared to commodity films). Much of their value is
created after the film is extruded. The focal point is on high-performance
resins and their chemistries, including the following:

Polyesters, primarily PET. We use PET interchangeably with "polyester"
throughout this report.

Polyolefin-based specialty film resins.

Nylons (more properly and chemically called polyamides).

Polycarbonates (PCs).

Bioplastics, a newer group of plastics.

Fluoropolymers.

Acrylic films based on PMMA chemistry.

Polyimides (PIs).

Cyclic olefin copolymers (COCs).

Polyethylene naphthalate (PEN).

Liquid crystal polymers (LCPs).

Polysulfones.

Polyetherimides.

We also introduce some newer film resins whose markets at present are too
small to measure with any precision. These include polyketones,
benzocyclobutenes and polyacetals.

Basic polyolefins, such as polyethylene (PE) and polypropylene (PP), are not
included in our scope since they are true commodities used in commodity film
applications like grocery and garbage bags. Also excluded are other commodity
resins like polyvinyl chloride (PVC) and polystyrene. Specialty
polyolefin-based films are included, primarily and particularly when
multilayer construction is involved. These specialty films are ethylene vinyl
alcohol (EVOH), ionomers, polyvinylidene chloride (PVdC), polyvinyl alcohol
(PVOH) and polymethyl pentene (PMP).

Fluoropolymer films are an important of this report. They include the
following:

Polytetrafluoroethylene (PTFE).

Polyvinyl fluoride (PVF).

Fluorinated ethylene-propylene (FEP).

Polychlorotrifluoroethylene (PCTFE).

Polyvinylidene fluoride (PVdF).

Perfluoroalkoxy (PFA).

Ethylene tetrafluoroethylene (ETFE).

Ethylene chlorotrifluoroethylene (ECTFE).

The geographic scope of this report is the U.S. market. We include some
international discussion, for example of foreign-owned firms that are active
in these markets.

Our market estimates are by resin volumes in millions of pounds and we round
them to the nearest million pounds. We round to millions since with so many
products and applications, many of which are similar and can overlap, market
estimates are by nature just that, estimates and not precise beyond millions
of pounds, if that. Many applications markets for particular films are small,
less than a million pounds, but our precision here is not greater than for
larger numbers, and we round up to 1 million those estimated volumes greater
than a half-million. Also, compound annual growth rates (CAGRs) for table
entries with small volumes may not agree exactly with the 2013 and 2018
volumes; this is again caused by rounding.

METHODOLOGY AND INFORMATION SOURCES

Both primary and secondary research sources were used in preparing this study.
Extensive searches were made of the literature and the Internet, including
leading trade journals, technical papers, company literature, government
information and pertinent trade associations. Much product and market
information was obtained from the principals involved in the industry. The
information in our company profiles was obtained primarily from the companies
themselves, especially the larger publicly owned firms. Other sources included
directories, articles and Internet sites.

AUTHOR'S CREDENTIALS

Dr. J. Charles Forman has more than 50 years of chemical engineering and
business experience in private business in the healthcare industry, at a major
not-for-profit educational association, and as an independent technical writer
and analyst. He is an expert in the worldwide chemical process industries,
with specializations in healthcare, petroleum and petrochemicals, specialty
and agrochemicals, plastics, and packaging. He has written many BCC Research
reports on subjects including polymers and plastic packaging, chemical and
petroleum processing, catalysts, healthcare policy and products, food and feed
additives, chemicals/petrochemicals/specialty chemicals, pesticides,
biotechnology, and spectroscopy. He holds an S.B. degree in chemical
engineering from the Massachusetts Institute of Technology and Masters and
Doctoral degrees in chemical engineering from Northwestern University.